Zakat stands as one of the five pillars of Islam, representing a mandatory act of worship for Muslims whose wealth meets certain thresholds. Although the rules for Zakat on gold, silver, cash, and commercial goods are clear to many, questions often arise about Zakat on diamonds, gemstones, and precious stones.
Common searches include: “Is Zakat due on diamonds?”, “Do precious stones require Zakat?”, and “What about diamonds in jewelry or held as investments?” In today’s world, where diamonds and gems serve as popular assets, luxury pieces, or value preservers, these inquiries grow more pressing.
This detailed guide examines the Islamic ruling on Zakat for diamonds and precious stones, drawing from the Quran, Sunnah, traditional fiqh, and views of modern scholars.
Basics of Zakat: Which Wealth Qualifies?
To clarify the status of diamonds, start with the fundamentals of zakatable wealth.
Zakat applies only when wealth satisfies these key requirements:
- It reaches the nisab (minimum amount)
- It completes one lunar year (hawl)
- It is fully owned and available
- It has potential for growth or increase
Classic zakatable items include:
- Gold and silver
- Currency and savings
- Items for trade
- Crops
- Livestock
- Commercial stock
The central issue: Do diamonds and precious stones fit into these?
Difference Between Gold/Silver and Diamonds in Zakat
| Aspect | Gold & Silver | Diamonds & Gemstones |
|---|---|---|
| Monetary status | Currency standard | Non-monetary |
| Fixed Nisab | Yes | No |
| Mentioned in Sunnah | Yes | No |
| Zakat obligatory by default | Yes | No |
| Zakat applies if for trade | Yes | Yes |
Diamonds and Gemstones in Shariah Perspective
Diamonds, along with rubies, emeralds, sapphires, and similar gems, are prized natural resources. However, unlike gold and silver, they:
- Do not function as currency
- Feature fluctuating valuations
- Lack standardized weight-based pricing
In traditional fiqh, scholars typically classify them as non-currency items unless acquired for commerce.
Majority Ruling: No Zakat on Diamonds for Personal Use
Most scholars across the major schools conclude:
No Zakat is required on diamonds or precious stones if kept for personal wear, decoration, or non-commercial purposes.
This position is shared by the Hanafi, Maliki, Shafi’i, and Hanbali madhabs (with slight variations).
Supporting evidence includes:
- Diamonds existed in early Islam, but no specific Zakat mandate appears for them
- The Prophet ﷺ never mandated Zakat on gems
- Zakat legislation targets gold and silver specifically as monetary metals
Zakat on Diamond Jewelry for Personal Adornment
If gems or diamonds are:
- Set in rings, necklaces, or bracelets
- Worn for permissible personal beautification
- Not bought for resale
No Zakat applies to the stones themselves.
Note: If the piece includes gold or silver, Zakat covers only the metal portion—not the gems.
Example:
A ring with 20 grams of gold and a 1-carat diamond → Zakat on the 20 grams of gold only (diamond exempt).
Zakat on Diamonds as Investments
Diamonds trigger Zakat when:
- Bought intending profit through resale
- Stored as stock for business
- Treated as commercial goods
They then classify as urud al-tijarah (trade merchandise).
Ruling:
Pay 2.5% Zakat on the current market value after one lunar year.
Example:
Investment diamonds valued at $50,000 → Annual Zakat: $1,250.
Zakat on Gems in Jewelry Business
For jewelers, gem traders, or diamond dealers/retailers:
All stock held for sale is fully zakatable, calculated on:
- Total inventory value
- Cash on hand
- Outstanding receivables
Scholars unanimously agree on this.
Hanafi Madhab Specifics
The Hanafi school applies stricter rules to gold/silver jewelry (even personal). Yet:
- Diamonds and gems remain exempt
- Zakat targets only the metal part
- Pure stones avoid Zakat unless for trade
Thus, isolated diamonds incur no Zakat under Hanafi views either.
Modern Scholars and Institutions
Contemporary authorities align with the traditional majority:
- Islamic Fiqh Academy (OIC): No Zakat on gems unless for trade
- Various Dar al-Ifta bodies: Personal gem jewelry exempt; commercial gems zakatable
Leading scholars like:
- Shaykh Ibn Baz
- Shaykh Ibn Uthaymeen
- Mufti Taqi Usmani
All emphasize: Intention at acquisition decides Zakat obligation.
Calculating Zakat on Diamonds (When Required)
Follow these steps if applicable:
- Confirm purpose: Personal → exempt; Trade/investment → due
- Determine present market value
- Verify one lunar year elapsed
- Pay 2.5% of the value
Frequent Misconceptions About Zakat on Diamonds
- ❌ “Higher value than gold means Zakat applies” → Value alone doesn’t trigger it
- ❌ “All jewelry requires Zakat” → Only gold/silver portions (per madhab)
- ❌ “Luxury items always zakatable” → Shariah distinguishes wealth categories, not luxury
Why This Ruling Exists
Zakat promotes wealth flow, discourages hoarding money-like assets, and ensures equity with simplicity.
Gold and silver qualify due to their:
- Historical currency role
- Consistent valuation
- Economic utility
Diamonds miss these traits, earning exemption outside trade.
Tips for Muslims Today
- State intention clearly when buying
- Track records for commercial items
- Seek guidance from qualified scholars if uncertain
- Consider voluntary sadaqah when in doubt
Summary: Key Zakat Rulings on Diamonds
- No Zakat on diamonds/precious stones for personal wear or holding
- No Zakat on gems as private assets
- Zakat required if held for trade or investment (2.5% on market value)
- Gold/silver in jewelry always subject to its own rules (stones unaffected)
Grasping these guidelines empowers Muslims to discharge Zakat duties precisely, upholding Shariah principles of fairness and spiritual purity.